Critical Contrast: Keppel DC REIT (OTCMKTS:KPDCF) & Easterly Government Properties (NYSE:DEA)

Easterly Government Properties (NYSE:DEA) and Keppel DC REIT (OTCMKTS:KPDCF) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Valuation & Earnings

This table compares Easterly Government Properties and Keppel DC REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Easterly Government Properties	$336.10 million	3.45	$13.00 million	$0.21	116.67
Keppel DC REIT	N/A	N/A	N/A	N/A	N/A

Easterly Government Properties has higher revenue and earnings than Keppel DC REIT.

Insider & Institutional Ownership

86.5% of Easterly Government Properties shares are held by institutional investors. 6.5% of Easterly Government Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Easterly Government Properties and Keppel DC REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Easterly Government Properties	2.86%	0.75%	0.30%
Keppel DC REIT	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Easterly Government Properties and Keppel DC REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Easterly Government Properties	1	4	2	0	2.14
Keppel DC REIT	0	0	0	0	0.00

Easterly Government Properties presently has a consensus price target of $25.06, indicating a potential upside of 2.30%. Given Easterly Government Properties’ stronger consensus rating and higher probable upside, research analysts clearly believe Easterly Government Properties is more favorable than Keppel DC REIT.

Summary

Easterly Government Properties beats Keppel DC REIT on 9 of the 9 factors compared between the two stocks.

About Easterly Government Properties

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).

About Keppel DC REIT

Keppel DC REIT was listed on the Singapore Exchange on 12 December 2014 as the first pure-play data centre REIT in Asia. Keppel DC REIT’s investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate and assets necessary to support the digital economy. Keppel DC REIT’s investments comprise an optimal mix of colocation, fully-fitted and shell and core assets, as well as debt securities issued by NetCo which holds network assets, thereby reinforcing the diversity and resiliency of its portfolio. Keppel DC REIT is managed by Keppel DC REIT Management Pte. Ltd. (the Manager) and is sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.